PFC Q1 profit up marginally at Rs 4,580 cr; income falls 2% to Rs 18,544 cr

State-owned Power Finance Corporation (PFC) on Friday posted a marginal rise in consolidated net profit at Rs 4,579.53 crore for June quarter 2022-23.

The net profit of the company was Rs 4,554.98 crore in the year-ago period, a BSE filing stated.

Total income was at Rs 18,544.04 crore as against Rs 18,970.39 crore in the same period a year ago.

The board in its meeting held on Friday approved an interim dividend of Rs 2.25 per equity share of face value of Rs 10 each for 2022-23.

September 3, 2022 shall be the 'Record Date' for the purpose of ascertaining the eligibility of shareholders for payment of the interim dividend.

The date of payment /dispatch of the interim dividend shall be on or before September 11, 2022.

The board also approved subscription of 50 per cent equity shareholding not exceeding Rs 50 crore in PFC Projects Ltd(PPL)

for taking over stressed/NPA (bad loan) assets in the power sector, subject to requisite approvals.

PPL is a power asset management company. The PFC Board on August 12, 2022 accorded approval for creation of Power Asset Management Company (PAMC) for taking over the stressed/NPA power assets.

The creation of PAMC is subject to further approval from Ministry of Power and other authorities. PAMC will be a Joint venture between PFC and REC with equal share of 50:50.

The REC Board on August 5, 2022 approved the proposal for subscribing to 50 per cent equity in PAMC.

PAMC will be a professional organization which will have the expertise to acquire stressed power assets, operate, maintain and to complete them wherever required.

The company said in a statement that sustained resolution efforts has resulted in standalone net NPA levels to drop below two per cent---the lowest in 5 years.

The net NPA ratio stood at 1.73 per cent for Q123 viz-a-viz 2 per cent in Q122.

The 23 basis points reduction in consolidated net NPA ratio from 1.80 per cent in Q122 to 1.57 per cent in Q123 is due to resolution of stressed assets.